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Residency Information

Permanent Residents

Residents Scheme Regulations

  • An individual may take up residence in Malta under the Residents Scheme Regulation 2004, by obtaining a certificate from the Inland Revenue Department.
  • The certificate is issued for an indefinite period as long as certain conditions are satisfied on an annual basis.
  • Holders of such a certificate and their dependants may therefore enter and leave Malta as and when required without any other formalities.

Who may apply
Any foreigner, of whatever nationality, may submit an application under the scheme provided that the specific conditions are satisfied.
This scheme is of particular interest to those Foreign Nationals with a relatively high income, who are subject to a high tax rate in their country of residence

Conditions for Application
An individual is eligible for the Residents Scheme Regulation 2004 if:

  • He/she has an annual income of at least Lm 10,000 (¤ 23,300 €) or capital of at least Lm 150,000 (¤ 350,000 €)
  • He/she remits annually to Malta an income equivalent to Lm 6,000 (¤ 13,980 €) in his / her respect and Lm 1,000 (¤ 2,330 €) in respect of each dependant.

Timing

  • The processing of applications takes around three months.
  • The minimum amount of tax Lm 1,800 (¤ 4,193 €) must be paid within 30 days from approval of the application
  • This amount is credited against the tax due by the permanent resident for the first year of assessment. If the applicant does not take up residence within 12 months from the certificate’s date of issue, and such certificate is withdrawn, a refund of Lm 1,300 (¤ 3,030 €) is given.

 
Once in possession of a Permanent Residence Scheme certificate the holder:

  • Will be required to take up residence by not later than one year from the issue date of the certificate.
  • Must purchase a house valued at not less than Lm 50,000 (¤ 116,500 €) or an apartment / maisonette of at least Lm 30,000 (¤ 69,881 €)

Alternatively he / she may lease or rent property for not less than Lm 1,800 (¤ 4,193 €) per annum. The acquisition or lease should take place within one year from the issue date of the certificate.

Other Residents

  • If you spend less than six months in one calendar year in Malta, there is No Tax.  
  • Foreigners residing in Malta are taxed on income and capital gains arising in Malta (unless exempt) and on income remitted to Malta.
  • Foreign source income which is not remitted to Malta is not subject to Malta tax and
  • Capital gains are not taxable even if they are remitted to Malta.
  • Foreign Nationals (not Permanent Residents) are able to purchase one property in Malta in their own name as long as the value is not less than Lm 66,200 (¤ 154,200 €) in the case of a house and not less than Lm 39,700 (¤ 92,480 €) in the case of an apartment / maisonettes.  
  • In Special Designated Areas, Foreign nationals may purchase more than one property in the name of an individual/s, a Company or Trust and they may let it out.

Citizens from  all EU member states, who have resided in Malta, at any time preceding the date of acquisition,  for a minimum continuous period of five years, may freely acquire more than one immovable property, without the necessity of obtaining an AIP  permit.

The income tax rates applicable to foreign residents are the standard rates of income tax applicable to residents which are as follows:

Married     Single
First
Next
Next
Over
Lm 4,500 (¤ 10,500 €)
Lm 3,500 (¤  8,150 €) 
Lm 2,000 (¤  4,650 €) 

Free
15% 
25%
35%
First
Next
Next
Over
Lm 3,250 (¤ 7,570 €)
Lm 2,250 (¤  5,250 €) 
Lm 1,250 (¤  2,900 €)

Free
15% 
25%
35%

Couples with separate incomes may choose to be taxed on an individual basis in which case the first Lm 3,250 (¤ 7,570 €) would be TAX FREE.
Should you require any further information please contact us and we will forward you the details of our Legal & Tax advisors

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Tax Benefits
  • Permanent Residents have a flat rate of income tax of 15% on income remitted to Malta with a minimum tax liability of Lm 1,800 (¤ 4,193 €) per annum.
  • Income arising abroad which is not remitted to Malta is not subject to any tax in Malta.
  • Capital gains remitted to Malta are not subject to any tax whatsoever
  • Access to Malta’s wide treaty network as well as unilateral relief provisions. Double Taxation Agreements
  • Certain income (such as dividends, interest and royalties) remitted to Malta may qualify for reduced withholding tax rates
  • Other income (such as pensions and capital gains) may be exempt from foreign tax
  • No net worth or wealth taxes
  • No inheritance tax.
  • Inheritance of immovable property or of securities in a company owning principally real estate attracts duty at 5%
  • Inheritance of securities of other companies attracts duty at 2%.
  • Stamp duty on purchase of real estate in Malta is at 5%
  • No real estate tax. Any capital gains is exempt from tax if the property has been owned and occupied for at least three consecutive years and the property is transferred within one year of being vacated
  • All sale proceeds including all  profits may be repatriated in the  country and currency of choice
  • There are no property rates, or property taxes in Malta.
  • No customs duties or VAT on household effects. Non EU residents may be required to put a deposit or a bank guarantee for the VAT / duty in question. Upon the expiry of 183 cumulative days stay in Malta such deposits or bank guarantees are refunded or cancelled provided the duration of stay can be proved.

Should you require any further information please contact us and we will forward you the details of our Legal & Tax advisors

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Other Benefits
  • Special concessions on the importation of personal effects and pets.
  • Local mortgage facilities are available for up to 90% of the purchase price
  • Properties with swimming pools may be rented out.
  • Multiple property purchase permitted in special designated areas.
  • Deeds and documents are read and published in English
  • Very easy to communicate – practically everybody speaks English. Other languages also widely spoken.
  • Member of the European Union
  • Politically stable
  • Geographical location - just a few hours flying time from most European cities
  • High Gross Domestic Product (GDP)
  • Very safe
  • Very friendly people
  • Excellent climate
  • Excellent social life
  • Low cost of living
  • Low cost airlines
  • Excellent IT infrastructure
  • Rich in history & culture
  • Excellent health & medical services
  • Very good night time entertainment
  • First class health, wellness & spa outlets
  • Varied sports activities

Should you require any further information please contact us

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